Federal Reserve Bank of Atlanta President Raphael Bostic said on Tuesday he could eventually support shifting the central bank’s 2% inflation target to a range.
Key Quotes
New Fed policy framework is valid in many different circumstances.
I would be open to using an inflation target range.
Could support a 1.75% to 2.25% inflation target range at some point down the road.
Fed funds rate is the Fed’s primary tool for monetary policy.
Should be concerned about inflation given how long it’s been above target.
Tariff impact thus far is more muted on inflation than expected.
Businesses are feeling cost pressures and limits to not passing them on.
Expects to see more inflation pressures.
Is still worried about inflation; the Fed needs to pay ‘close attention’ to thinking about prices.
If inflation heats up, that could lead to a ‘very difficult response’ in the economy.
Labour markets are very difficult to interpret right now.
Businesses are saying they’re not hiring, not firing, given uncertainty.
It’s possible that the neutral rate is rising.
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